Danske Bank ups profit view; sees 'negligible' Q4 impairments
Reuters
Published Dec 08, 2023 10:24
COPENHAGEN (Reuters) - Danske Bank on Friday raised its full-year net profit forecast due to more favourable macroeconomic conditions and "negligible" impairments in the fourth quarter, but warned of a high level of uncertainty ahead.
Denmark's largest bank now expects net profit this year in the range of 20.5 billion-21.5 billion Danish crowns ($2.96 billion-$3.11 billion) compared with its previous guidance of 19.5-20.5 billion.
"The macroeconomic conditions have developed more favourably than initially expected," Chief Financial Officer Stephan Engels said in a statement.
"The robust financial position among our customers has underpinned our strong credit quality, which forms the basis for our revised profit outlook," he said.
Despite this, and expected "negligible impairments" of 300 million crowns in the fourth quarter, "we remain cautious as we still see a high level of uncertainty ahead," Engels said.
Danske Bank kept its full-year outlook for income and expenses unchanged and confirmed the assumptions for loan impairment charges in its financial targets for 2026.
The bank is due to publish full-year results on Feb. 2.
($1 = 6.9179 Danish crowns)
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Written By: Reuters
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